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Seminar paper from the year 2014 in the subject Economics - Macro-economics, general, grade: A1, Hacettepe University (Faculty of Economics), course: Seminar ''Master Degree'', language: English, abstract: International trade and international investment flows has been a main feature of the globalization era. However, international flows of goods, services, labor, and knowledge among national borders is not a recent phenomenon. Since World War II, most countries attempted to increase the rates of their international trade flows due to the increased impact of foreign firms investing on their economic performance. When firms go international, they benefit from the increased international competition, and learn from their global operations. Moreover, these firms can help their domestic economies by providing foreign currency, enhancing domestic productivity, and employment opportunities which positively affect the national trade deficit.